feasibility study complete - entering pre-construction...

www.allanapotash.com | TSX: AAA OTC: ALLRF

Feasibility Study Complete - Entering Pre-Construction Stage

Developing First Potash Production In East Africa

Corporate Presentation – July 2013

www.allanapotash.com | TSX: AAA | OTC: ALLRF

Forward Looking Statements

The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.

Investors are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves

Peter J. MacLean, Ph.D., P. Geo., Allana’s Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in in this presentation.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources

The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

The measured, indicated and inferred mineral resource and reserve estimates were reviewed and optimized by EuroGeol. Dr. Henry Rauche and EuroGeol. Dr. Sebastiaan van der Klauw, who are “qualified persons” as such term is defined in National Instrument 43-101 .For information regarding the mineral resource and reserve estimates, including parameters used to generate the estimates, please see the Company’s press release dated February 4, 2013 and the technical report titled “TECHNICAL REPORT Summarizing the Feasibility Study for a Sylvinite Solution Mine for the ALLANA Potash Project (The ALLANA and NOVA properties), Afar State, Ethiopia" filed on SEDAR on March 19, 2013 as well as the press release dated June 26, 2013 and the supporting NI 43-101 technical report to be filed on SEDAR on or before August 10, 2013.

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Strategic Location & Deposit Close proximity to key Asian and Pacific Rim markets Outside of large potash marketing cooperatives’ influence Low cost MOP product, with SOP potential Geopolitically stable / environmentally benign

World Class Resource Potash Resources – ERCOSPLAN Update (effective as of April 2013) Measured + Indicated (all horizons) 2.4 B tonnes @ 17.9% KCl Inferred (all horizons) 1.1 B tonnes @ 15.9% KCl

Low Cost and Proven Mining Method

Feasibility Study (FS) supports low-cost capex & opex (Feb. 2013) Solution mining & solar evaporation process pilot tested proven Shallow depth (100-300 metres); Hot climate (+40̊ C)

Strong Strategic Partners International Finance Corp - World Bank Group member

Liberty Metals & Mining - Liberty Mutual Group affiliate

Well Financed Over C$ 75 million raised in equity markets Cash reserves sufficient to reach construction stage

Solid Management & Board Proactive and experienced in potash and large development projects

Fast Track to Production Site testing & pilot works completed Feasibility Study (FS) & ESIA complete Financing and pre-construction development underway

Advantages of Allana’s Dallol Potash Project

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Allana Company Overview

Listed on TSX–AAA; OTCQX–ALLRF

C$138 million market cap

C$21.6 million cash on-hand (as of April 30, 2013)

No debt

Flagship Asset

Ethiopia, Dallol Project – 312 km2 adjacent potash licences in

Afar region, northern Ethiopia

Key Milestones – Dallol Project focus

Environmental & Social Impact Assessment (“ESIA”) approved May 2013

Feasibility Study (“FS”) completed February 2013

Management developing strategic off-take(s) / project equity co-investment(s)

BNP Paribas - financial advisor for project debt (soft commitments for +$US600 million)

Share Information

276.5* M shares outstanding basic

302.3 shares fully diluted *includes escrowed shares related to Nova Potash acquisition

C$ 0.70/share 52 week high

C$ 0.35/share 52 week low

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Other Assets

• Argentina – 1,540 km2 in potash-rich Neuquen province, next to Vale’s Rio Colorado development


Strong Management Team

Farhad Abasov, MBA, President, CEO & Director Over 15 years business management experience; Executive Chairman Rodinia Lithium; founded several public and private mining and energy companies; Previously Senior Vice President at Potash One and Vice President at Uranium One. Former member of Energy Metals management team (Energy Metals sold to Uranium One for $1.8 billion in 2007)

Peter MacLean, Ph.D., P.Geo, Senior Vice President, Exploration Over 20 years experience in the mining & exploration industry with junior and senior mining companies including Monarch Resources, Aur Resources and Newmont Mining

Nejib Abba Biya, Senior Vice President, Corporate Development, Ethiopia

Co-founder of Allana Potash. Originally from Ethiopia, with over 20 years of business experience in Canada and Africa, particularly Ethiopia. Has held senior positions in various multi-national corporations in Canada. Excellent working relations with the federal and regional governments in Ethiopia

Jack Scott, MBA, P. Eng., Senior Vice President, Strategic Projects Over 25 years experience worldwide with resource, energy, infrastructure and technology industries in project development and financing, engineering and construction, risk valuation, strategic planning, acquisitions and divestments

Richard Kelertas, MscF., RPF, Senior Vice President, Corporate Development For 25 years, a top ranked equity analyst for various national and international firms, also having held various positions in corporate Canada in sales, marketing, corporate development, corporate banking and equity capital markets

Jason Wilkinson, M.Sc, Vice President, Danakhil Operations, Ethiopia Over 15 years exploration and development experience in Africa, Asia and Europe. Most recently head of exploration for Lydian and Aur Resources

Deborah Battiston, Chief Financial Officer C.G.A. with over 20 years accounting and financial management experience

Brianna Davies, J.D., Corporate Secretary Corporate securities lawyer with experience in the mining and resource sector

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Strong Board & Advisory Team

BOARD OF DIRECTORS

Dr. Mark Stauffer - Chairman Former President of Potash and Phosphate Institute of Canada, over 30 years of experience in potash & fertilizer markets

Richard Lacroix Former Senior Vice President, Potash Corp of Saskatchewan (PCS), former Director of Canpotex & former Chairman of Canpotex Bulk Terminals, 30 years with PCS

Maj.-Gen. (Ret.) Lewis MacKenzie Former General - Canadian Armed Forces; lead UN Peacekeeping force in Balkans

Diana Walters Current President/CEO of Liberty Metals and Mining, over 20 years in management positions for energy, mining & finance.

Farhad Abasov - President & CEO

TECHNICAL ADIVSORY BOARD

Stephen Halabura, Senior Advisor Chairman of North Rim Exploration, a premiere potash consulting company - over 25 years experience consulting to BHP Billiton, Athabasca Potash and Potash One.

Robert Connochie, Senior Advisor President, Behre Dolbear Capital, Inc. and Chartwell Ventures Inc., Formerly President and Chairman of the Potash Company of America & Chair at Canpotex Limited, The Potash and Phosphate Institute, the Foundation for Agronomic Research and the Saskatchewan Potash Producers Association.

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Allana Dallol Project Proximity to Key Markets

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Africa – A Potentially Vast Agricultural Powerhouse

African population projected to reach 2.2 billion by 2050+

African demand for fertilizers set to explode over next decade Current KCI usage < 1 million tpy Potential demand for 3-5 million tpy (today) Potash usage could reach 5-7 million tpy by 2020* Allana could potentially supply Ethiopia with 250k-500k tpy and Africa with

0.5-1.0 million tpy of supply by 2020

Africa

Sources: Wendt, J., 2012. Potash Fertilizers in Africa: Background, Assessment and Prospects. Electronic International Fertilizer Correspondence (e-ifc) No. 32, 11/2012. International Potash Institute (IPI), Horgen, Switzerland. http://www.ipipotash.org/en/eifc/2012/32/6 + World Bank forecast – current population of approximately 900 million in 2010 *Approximately equal to 8-9% of projected world demand by 2020 8

Fig 1. Nutrient consumption (NPK) in regions, 1961-today. The term “Africa” includes North African countries, sub-Saharan Africa and South Africa. Source: IFA

Fig 2. Fertilizer use (kg ha 1) for various regions and markets, 2012. Source: IFDC, derived from FAOSTAT

http://www.ipipotash.org/en/eifc/2012/32/6�


Ethiopia – A Rising Economic Powerhouse in Africa and in the World

Ethiopia is leading the whole of Africa in economic growth

Massive investments in infrastructure, rail, roads, power, and port facilities now taking place

Agriculture modernization being fast tracked

Rapid shift from subsistence agri/economy to export oriented agri/industrial economy

DAP/MAP plant capacity growing amid resurgence in ag investments

Allana supports and participates in the ATA+ initiative in Ethiopia + ATA - Agricultural Transformation Agency

Ethiopia among the world’s ten fastest growing economies

Source: The Economist 9


Graduated from Exploration to Development Stage

Dallol Camp in 2009 Dallol Camp in 2013

Paved Road access to Camp

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ETHIOPIA

Nazreth

Gonder

Harar

Dire DawaAddis Ababa

ETHIOPIA

Nazreth

Gonder

Harar

Dire DawaAddis Ababa

SOMALIA

ERITREA

DJIBOUTI

KENYA

SUDAN

Capital

Major cities


Source: ERCOSPLAN PEA

4-10m

10-20m

Resource Definition 2010-2012

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Yara

Yara


Resource & Deposit Update+

(Sylvinite Resources Only)

* Accounts for losses in caverns and for pillars ** See Cautionary Note, Page 2 + Effective as of April 17, 2013 12

Resources for the Future

• Kainitite M+I= 1,150 Mt @ 19% KCl

• Kainitite Inf= 482 Mt @ 20% KCl

• UC M+I= 411 Mt @ 17% KCl

• UC Inf= 175 Mt @ 17% KCl

Sylvinite Reserves** Mineable (MT)* KCl (%) Contained MOP (MT)

Proven 32.97 28.0 8.2

Probable 60.81 28.8 15.5

Total 23.7

Sylvinite Resources**

In Situ Resource (MT)

KCl (%) Contained KCl (MT)

Measured 115.31 27.8 32.0

Indicated 212.11 28.6 60.7

Inferred 90.76 27.8 25.2


Feasibility Study* Highlights - Financial

After Tax NPV @10% (discount rate) US$1.32 billion IRR (after tax) 33% Payback Period – from start of operations 3.1 years Key Assumptions:

Potash Price (US$ 2013) US$430 / tonne

Proven and Probable Reserves (Sylvinite) 24 million tonnes MOP+

Annual Production 1 million tonnes MOP

Mine Life 25 years

+ MOP – Muriate of potash *The Feasibility Study was prepared by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergau (“ERCOSPLAN”) under the supervision of EuroGeol. Dr. Henry Rauche and EuroGeol. Dr. Sebastiaan van der Klauw, who are “qualified persons” as such term is defined in National Instrument 43-101. Dr. Peter MacLean, Ph.D., P. Geo. Senior, Vice President, Exploration is the Company’s designated Qualified Person for the purposes of the Feasibility Study. For more information regarding the Feasibility Study, including parameters used to generate the estimates, please see Company’s press release dated February 4, 2013, and supporting technical report filed on SEDAR on March 17, 2013”

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Production CAPEX US$ 433 Million Transportation CAPEX 18 Million Port CAPEX 24 Million Contingency, EPCM, Owners 167 Million TOTAL CAPEX US$ 642 Million Production OPEX US$ 64.72 / tonne Transportation & Port OPEX 27.57 / tonne G&A, Contingency 6.46 / tonne TOTAL OPEX (loaded onto ship) US$ 98.75 / tonne Sustaining CAPEX US$ 23.4 million/year US$23.40/tonne Accuracy of Study ±15%

Feasibility Study* Highlights - Project Costs (US$ 2013)

*The Feasibility Study was prepared by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergau (“ERCOSPLAN”) under the supervision of EuroGeol. Dr. Henry Rauche and EuroGeol. Dr. Sebastiaan van der Klauw, who are “qualified persons” as such term is defined in National Instrument 43-101 . Dr. Peter MacLean, , Ph.D., P. Geo. Senior, Vice President, Exploration is the Company’s designated Qualified Person for the purposes of the Feasibility Study. For more information regarding the Feasibility Study, including parameters used to generate the estimates, please see Company’s press release dated February 4, 2013, and supporting technical report filed on SEDAR on March 19, 2013” 14


Solution Mining / Production Process

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Production Site with Selected Infrastructure

Brinefield with cavern outlines, brown zones site of first production

Ponds located in centre of basin

Conveyor system from ponds to plant site

Tailings (halite) used for roads, dykes, backfill of caverns and remainder piled on salt plain

Water infrastructure in FS approx. $20M, well fields highlighted in green

Adequate water resource for 18.5 M m³ of water usage yearly

Aquifer recharge rate of 35 – 50 M m³ per year

Total aquifer size of 160 M m³ of water

Plant Site

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Hydrogeological Study Aquifer From Geophysics

Ground geophysics successfully delineates water reservoir in alluvials of 160 million cubic metres

Recharge rate estimated in range of 35 - 55 million m³/year

Project water requirements approx. 18.5 million m³/year

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Pilot Operations - Evaporation Pond & Solution Mining Tested

Evaporation rates of 1 cm/day Solution well leaching Sylvinite

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Transportation Route

Government-built paved road from Afdera to Tadjoura

Government extending paved road to Dallol and to Tadjoura Under construction or

committed FS includes contingency for 120km

of haul road, if needed for timely completion

Alternate routes available – existing or construction completion expected by 2013

Haul Road Completion

Afdera

Tadjoura Port

Allana Plant

Road Construction

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Product Transport

Owner operated truck fleet: 100 - 125 tandem trucks at full production Max. Loading: 40 tonnes Max. Speed: 80 km/h Unloading: 5 min Round trip: 1,100 km

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Djibouti Port Development Operational by 2015

New Tadjoura Port Site

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Port civil works and servicing constructed by Djibouti Port & Free Zones Authority Initial port design with Allana’s covered storage for 50,000 tonnes of MOP & simple

conveyor system to ship loader Phased expansion to 150,000 tonnes and accommodation for rail infrastructure


Railway Infrastructure Developments

Mekele – Awash Line $3.2 billion 810 km

2 contracts Complete 2015

Mieso

Awash

Hara Gebeya

Danakhil Highway Route (& potential future rail route)

330 km to Semera

Semera

Weldiya – Tadjoura Line ~$2 billion 540 km

2 contracts (pending) Complete 2017/18

Contracting being completed. Would cut trucking distances in half

Addis Ababa – Djibouti Line $2.8 billion 760 km

3 contracts Complete 2015

Will shift significant traffic from highway to be used by Allana trucks

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Path Forward – Timeline

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ACTIVITY 1H 2012 2H 2012 1Q

2013 2Q

2013 3Q

2013 4Q

2013 1Q 2014 – 4Q 2015

1Q 2016 – 4Q 2017+

Drilling / Exploration >25,000 metres

In-fill pre-production, Nova ground

Resource Estimate NI43-101 compliant ERCOSPLAN Update

Apr.2012 Reserves

in FS

Technical & Economic Feasibility Study (FS)

ERCOSPLAN Fugro Mining

Licence Environmental & Social Assessment

ERM

Off-take Agreement(s)

Strategic/Financial Investor(s) DD & Close

Project Financing BNP Paribas

Project Contracting

Construction & Pre-Operations

Plant, Ponds & Initial Well Field

Operations Ramping to Target Output

Ramp-up & Full Production

Project Equity Commitments

Project Debt Commitments


Thank you – Questions?

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Contact Information:

Spinnaker Capital Markets Inc. Kevin O’Connor [email protected]

Richard Kelertas Senior Vice President – Corporate Development [email protected]

feasibility study complete - entering pre-construction...

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